Apple has a new 'augmented-reality' unit — this is what it does

Metaio's technology is used to show off the inner workings of a Ferrari.
Metaio/YouTube

Apple is entering the augmented reality arms race with the acquisition of German company Metaio.

Apple has been typically tight-lipped about the acquisition, first reported by TechCrunch, saying only that "Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans."

Metaio mysteriously shuttered earlier this week, prompting speculation over its future. Before the news broke, some thought it might have been bought by Google— which is openly exploring augmented and virtual reality — ahead of its annual I/O conference this week.

Instead it's Apple, entering an increasingly crowded field of competitors, all racing to bring products to the market.

What is Metaio?

Founded in 2003, Metaio developed augmented reality technologies. It's described on its VentureBeat profile as "[developing] software products for visual interactive solutions seamlessly combining real and virtual elements. Based on its Augmented Reality platform of solutions and software, digital content can be integrated seamlessly into a real-world environment through a camera device."

In real terms, this means apps and products that make use of cameras on smart devices (phones/tablets) to create an overlay of the real world on the screen. Museums could use it to enrich exhibits, for example — point your smartphone at an item with the app open and camera on, and it'll display additional information about it alongside it.

The company is based in Germany, headed up by co-founder Thomas Alt as CEO (the other co-founder Peter Meier, is CTO). According to ZDNet, Metaio worked with over 140,000 developers, and counted Lego, Audi, IKEA, and Mitsubishi among its clients.

What does it look like in practice?

One of Metaio's clients was Ferrari. The company produced an app for the automotive manufacturer that staff in showrooms can use to demonstrate the cars' features.

It also developed a "Time Traveler" app to let visitors to the Berlin Wall experience the historical site through the years.

IKEA was another client — here's a video of an augmented reality app by the homeware company produced with Metaio's tech:

Where does this fit into Apple's plans?

Apple is already exploring augmented reality, according to Gene Munster at Piper Jaffray. In March 2015, the respected analyst put out a research note saying that sources have told him that the Cupertino company has a "small team working and exploring the augmented reality space."

A diagram from a patent granted to Apple for a virtual reality headset.
USPTO
Apple is also working on augmented reality for its Maps product, according to a report by 9to5Mac's Marc Gurman this week. "Pointed towards a cafe, for example, the screen could show a virtual view of menu items or daily specials. If the user points her phone toward a street, a virtual outline of local businesses, restaurants, shopping stores, or coffee shops could appear," Gurman writes.

The acquisition of Metaio and the expertise of its team could help bolster these efforts.

Why is Apple doing this?

The augmented reality space is heating up right now, and Apple clearly doesn't want to be left behind. The mapping technology it is reportedly developing is similar to Yelp's Monocle, a product already on the market. And multiple other big tech companies are also exploring the potential of augmented and virtual reality.

Google's botched Google Glass headset is the most famous attempt so far. Users had a head-mounted miniature screen and camera, that could provide them with context-dependent information and provide hands-free interactivity. But it failed to see major uptake, with wearers derided as "glassholes." Nonetheless, Google is continuing its efforts after a "reset" of its strategy, and the team is now hiring again.

Microsoft made headlines earlier this year when it announced Hololens, a flashy virtual reality headset with numerous touted applications ranging from 3D design to gaming, office use, and home repair guidance. BGR reports it may be released as early as this summer, around the same time as Windows 10.